Robert Pozen looks at the causes of the 2008 financial collapse and says that the financial system needs to be reformed so that we don’t see a repeat down the road. He argues for changing the incentive system on Wall Street and calls for strengthening the government regulation of financial markets. (1 hours, 9 minutes)
Read the full story »The government should guarantee interbank activity.
Congress has not yet addressed the regulatory implications of bailing out non-bank institutions. Four legislative changes are needed.
Getting Medicare costs under control is no easy job. Congress recently overrode a scheduled 11 percent cut in Medicare’s physician fees by freezing them for the rest of 2008 with a slight raise in 2009. But the program’s finances will continue to worsen as baby boomers retire. Avoiding deep cuts in physician fees from 2010 onward will require a $20 billion fix every year for the following decade. But there is a straightforward way to pay for half of this ..read more
Analysis by Jim Rogers, Rogers Holdings Chairman, Barton Biggs of Traxis Partners, Robert Pozen, MFS Investment Management Chairman, Laszlo Biriyni, Biriyni Associates President, Howard Shapiro of Fox-Pitt.
Congress should extend the 1991 bailout law for banks to all financial institutions. In addition, any institution that lacks F.D.I.C. insurance for small depositors should be bailed out only if the Fed determines that its failure would materially jeopardize the entire financial system. In that case, the Fed should be required to evaluate, and document for subsequent review, whether a bailout is truly the least costly way of protecting the financial system. This is the only way to ensure that ..read more
Most markets for securitized debt have dried up. The cause is uncertainty: Since no one knows exactly who owns the potential losses from securitized mortgages, many investors stay away. When the Securities and Exchange Commission Advisory Committee on Improving Financial Reporting meets on Friday, it can take a big step toward reviving this critical part of our financial market. It should recommend that the regulators require someone to “own” the securitization process as well as require more disclosures about who ..read more
Robert Pozen, Chairman of MFS Investment Management, discusses what he views as a bit of “schizophrenia” within the auditing profession about whether they want regulatory principles or hard and fast “rules”
HBS professors bring a wealth of experience to the classroom and push you to think about what the issues really mean in the real world and what you can do as a person.
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